Ofgem Cuts Energy Price Cap: Relief for British Households
Ofgem announced a 7% cut in energy price caps, lowering average household bills by 117 pounds annually. Changes stem from a shift in renewable energy costs to taxation and scrapping supplier-funded insulation for low-income families. Consumer groups, however, warn prices remain substantially high for many households.
In a significant move, energy regulator Ofgem has announced a 7% reduction in its energy price cap starting April. This decision aligns with the government's effort to alleviate financial burdens on British households facing high energy costs.
The price cap, now set at 1,641 pounds annually for average electricity and gas use, reflects measures introduced in the previous year's budget. By transitioning 75% of the Renewables Obligation costs to general taxation and eliminating supplier-financed schemes for low-income families, the government aims to collectively reduce household bills by approximately 150 pounds per year.
Despite the decrease, consumer advocacy groups express concern, noting that energy bills remain unmanageable for many. The End Fuel Poverty Coalition highlights that current prices are still considerably above pre-crisis levels, maintaining pressure on the government to continue addressing the cost of living crisis.
Google News